Pivot

Epstein Files Fallout, Trump's Fed Chair Pick, and Musk Merger

Hosted by Kara Swisher and Scott Galloway
3 Feb 2026 18 min read 1h 15m
TL;DR

The Epstein Files reveal a web of powerful figures across tech, finance, and entertainment who either participated in crimes or exercised catastrophically poor judgment by socializing with a known predator. Separately, Trump's Fed chair pick Kevin Warsh appears qualified and hawkish on inflation, and Elon Musk is merging SpaceX and XAI into a $1.25 trillion entity ahead of a potentially massive SpaceX IPO.

Key Moments
Scott Galloway
“I think the people guilty of having sex with underage girls here while the term is pedophilia what it is is a group of people who feel they are not subject to laws and the standards that everyone else is subject to.”
Discussing the distinction between clinical pedophilia and wealthy elites who believe themselves above the law
▶ 13:49
Kara Swisher
“Everyone knew what this guy was back then. Trust me, they did and they went anyway. And so, bad judgment on Bill Gates's part, and I think Melinda Gates has talked about this.”
Arguing that many prominent figures in the Epstein files knowingly associated with him despite public awareness of his crimes
▶ 15:12
Scott Galloway
“I like the fact he has a reputation as a hawk. I love the fact that these appointments I believe in 14year tenures.”
Praising Kevin Warsh's hawkish stance on inflation and the importance of Fed independence through long tenure
▶ 26:19
Kara Swisher
“So now it's Twitter, SpaceX, and XAI. And you can just imagine Tesla being next.”
Describing Elon Musk's consolidation strategy of merging his major companies into a single valuation structure
▶ 29:31
Scott Galloway
“I think it's a great pick given the context of who he could have selected.”
Offering conditional praise for Trump's Fed chair nomination as a reasonable choice compared to other possibilities
▶ 25:11
About the show
›
Pivot is a weekly podcast from New York Magazine and Vox Media exploring big ideas in tech, business, and culture. Hosts Kara Swisher and Scott Galloway tackle the week's most important stories with sharp analysis and irreverent humor, connecting dots across politics, markets, and power.
Takeaways
1
Epstein files expose systemic elite impunity, not just pedophilia The scandal reveals a class of wealthy individuals who believed themselves exempt from law and morality—a structural problem distinct from clinical pathology. Enablers like John Brockman (TED facilitator) and casual attendees must be categorized separately from actual perpetrators, but public figures who lied about their involvement (Lutnik, Musk) warrant reputational consequences.
2
Warsh Fed pick signals Trump prioritizes market confidence over populism Kevin Warsh's hawkish inflation credentials and Wall Street relationships reassured markets immediately upon announcement, contrasting with fears of rate-cutting pressure. His 14-year tenure insulates him from political pressure, though Trump's joke about suing him over rates suggests ongoing tension around Fed independence and presidential expectations.
3
Musk consolidates empires ahead of historic SpaceX IPO The $1.25 trillion SpaceX-XAI merger strategically bundles Twitter's losses into a larger entity before a potential $50B SpaceX IPO—the largest ever. This structure allows Musk to leverage SpaceX's real revenue-generating assets to support X AI's cash burn while maximizing valuation optics for public markets.